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Customer Relationship Management: Benefits, Strategies & Tools

Customer relationship management (CRM) is a business strategy and technology solution for managing interactions with current and potential customers throughout the customer lifecycle. Customer relationship management (CRM) is a technology that manages all your company’s relationships and interactions with customers and potential customers. The goal is simple: Improve business relationships. A CRM system helps companies stay connected to customers, streamline processes, and improve profitability. CRM software helps you focus on your organization’s relationships with individual people, including customers, service users, colleagues, or suppliers, throughout your lifecycle with them, including finding new customers, winning their business, and providing support and additional services throughout the relationship. With a CRM solution, the sales and marketing team can track and follow a customer’s interaction journey with your business. This can enhance the customer journey and experience by refining each customer touchpoint.

In academia, CRM is studied within the fields of marketing, sales management, and customer experience. Researchers investigate CRM strategies and technologies, including customer data management, sales automation, marketing automation, and customer service solutions, to optimize customer engagement and retention. CRM platforms enable organizations to centralize customer data, segment audiences, personalize communications, and track interactions across multiple touchpoints to deliver personalized experiences and build long-term customer relationships. By leveraging CRM, organizations can improve customer satisfaction, increase sales productivity, and drive revenue growth through targeted marketing campaigns, lead nurturing, and customer service excellence. Academic studies on CRM also explore its integration with emerging technologies such as artificial intelligence (AI), machine learning (ML), and predictive analytics to enhance customer insights, predictive modelling, and proactive engagement strategies in the digital era.

On the contrary, cross-selling is the process of offering customers products that are compatible with the ones they’re purchasing. Cross-selling involves selling customers-related items when they are making a purchase. It’s important not only because it boosts revenue but also because it increases customer satisfaction, builds engagement, and helps to create solid and lasting customer relationships. An example of cross-selling would be offering a deal on a computer case to a customer who purchases a laptop. 

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What is the main purpose of customer relationship management?

CRM (customer relationship management) is the combination of practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle. The goal is to improve customer service relationships, assist with customer retention, and drive sales growth.

Which tool is used to measure the customer relationship?

Market research or market survey is a tool that can be implemented to measure customer relationships, customer satisfaction and customer loyalty.

What is the key to customer relationship management?

Customer experience is the key to more loyal customers, higher customer satisfaction, and more revenue. It provides a clear picture of what the organization wants to stand for. Sketch out the customer experience your customers can expect and what the focus is.

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